Indiana’s housing market remains one of the strongest in the Midwest. Here’s how prices are shaping up in 2025—and what buyers, sellers, and investors should know.
Statewide Snapshot
- Median home value is $253,000, up 3.3% YoY
- Redfin data shows a 4.1% YoY increase to $275,700, with rising sales and inventory redfin.com
- Zillow’s metric records a 98.9% sale-to-list ratio and homes are pending in ~10 days—indicating sustained competition
Why Prices Are Still Rising
- Strong demand + low inventory
Despite more listings (+13% YoY), supply remains tight relative to eager buyers . - Robust local economy
Job and wage growth are fueling housing demand, especially in metro areas like Indianapolis . - Inflation and borrowing costs
Home prices rose ~48% from 2020–2024, while wages grew ~23%—adding pressure to affordability. Meanwhile, mortgage rates stay near 7%, keeping demand steady
Price Appreciation Forecast: What’s to Come
- Indiana overall is expected to see slower but steady gains—around 2–4% appreciation in 2025
- Indianapolis, predicted by Zillow to be the Midwest’s second hottest market, is projected to climb around 3.4% this year
- Fort Wayne saw a 4% YoY bump to $245K in April 2025
Local Market Highlights
- Indianapolis metro
- Ranked #2 hottest market nationwide
- Expected to appreciate slightly above state average (~3–4%)
- Suburbs (Carmel, Fishers, Westfield, Zionsville)
- Inventory loosening slightly—good news for buyers
- Prices still climbing moderately; spring and fall remain prime selling windows
- Indiana smaller markets
- Fort Wayne up 4% YoY
- Lafayette surged ~27% over past year
What Buyers & Sellers Should Know
- Buyers: Prices won’t drop significantly—expect 2–4% appreciation while interest rates remain elevated. Prepare competitive offers.
- Sellers: You’re still in a strong, seller-friendly market. Proper pricing and staging are key, especially in higher inventory suburbs.
- Investors: Indiana’s balance of affordability, rent growth, and appreciation makes it attractive, but beware of rising renovation and financing costs.
How Talk to Annie Real Estate Helps You Navigate 2025
With competition strong and rates steady, local expertise is your edge. Here’s how I support clients across Indianapolis, Carmel, Fishers, Westfield, Noblesville, Zionsville, Greenwood, and Greenfield:
- Customized value reports—neighborhood-specific insights and market comparisons
- Proven pricing strategies—whether buying, selling, or investing
- Optimized timing—leveraging seasonal trends to your advantage
- Smooth transactions—from negotiation to closing, tailored to fast-paced markets
Curious about your area? I’d be happy to provide current comps and forecast data for your ZIP code.
Final Take
Indiana’s real estate market is entering a more balanced—but still healthy—phase. Price growth continues, just more moderately than in the past few years. Now is a smart time to strategize—whether you’re buying into the suburban appeal or selling in a strong market.
👉 Schedule your free real estate forecast session today at TalkToAnnie.com
Photo Credits: Yaopey Yong
Sources:
Zillow Home Value Index (May 2025)
Redfin
